Imagine that you have been asked by firms in the airline industry to use the industrial organization (I/O) model to help them identify reasons for their current performance problems. Which of the following conclusions might you draw?
A. Poor economic conditions have caused customers to reduce the number of times they travel by air.
B. War and international tensions have impacted the demand for airline services.
C. Increasing fuel costs have hampered the profitability of a number of airlines.
D. All of these.
Answer: D
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